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| Network show key to operator selection |
| Seema Sindhu / New Delhi May 04, 2009, 00:45 IST |
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It’s a well-known fact that price has been on top of all mobile operators’ marketing strategy. Even CDMA players getting into GSM are trying to drive the market on the back of a price war. But a Nielsen research states that it’s the network quality which is on top of the consumer’s mind.
The research, carried out in the Top-10 Indian cities, says that 42 per cent of Indian subscribers rate network performance as very important for selecting their mobile operator. In fact, with 34 per cent votes, network-driven choice is ahead of price-driven choice. After initial selection, satisfaction with network performance is the single most important driver for shaping an overall satisfaction with the operator.
The research measured wireless network performance for all national and select regional carriers in markets covering a population of nearly 100 million people across the country. It measured metrics such as satisfaction, willingness to recommend, reasons for churn and reasons for operator selection.
According to it, over 50 per cent of the variation in satisfaction levels across operators is determined by the variation in their network performance. This compares favourably with what Nielsen has seen in other markets.
“As the market grows and newer services are introduced, to retain the current high levels of satisfaction and to remain competitive, Indian operators need to be on top of the changing expectations of their subscribers,” said Shankari Panchapakesan, Executive Director, Telecom Practice Group, The Nielsen Company, in the report.
Prashant Singhal, head of telecom practice at Ernst & Young, feels otherwise: “India is still a price-driven market. People would say they consider better network quality as the first parameter while choosing a network, but their action doesn’t support what they say. When Reliance launched GSM services and offered life-time validity for merely Rs 25, there was a great excitement in the market. And, it’s getting a fair share of the market.”
According to him, it will take another year and so for people to become quality conscious. Now urban markets are saturated. So, growth will now happen in Tier III and IV markets, and since these markets are price sensitive, the price factor will rule.
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